Section 38N - Child Support Legislation Amendment (Reform of the Child Support Scheme—New Formula and Other Measures) Act 2006 - Income free area | Zoe
Child Support Legislation Amendment (Reform of the Child Support Scheme—New Formula and Other Measures) Act 2006
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Omit “the income year that commenced on 1 July 2000 and every succeeding income year”, substitute “an income year that commenced on or after 1 July 2000 until 1 July 2007 (inclusive)”.
86 After paragraph 39(2)(e) of Schedule 1
Insert:
(ea) the individual’s adjusted taxable income for the purposes of this Act (other than Part 4 of this Schedule) for the income year that commenced on 1 July 2008 and every succeeding income year has exceeded the individual’s income free area under clause 38N of this Schedule; and
87 Paragraph 39(2)(f) of Schedule 1
Omit “or 3”, substitute “, 3 or 3A”.
88 Paragraph 39(7)(a) of Schedule 1
Omit “or 3”, substitute “, 3 or 3A”.
89 Clause 2 of Schedule 4 (table items 4 and 5)
Repeal the items, substitute:
4
Rent threshold rate for rent assistance for family tax benefit (Part A—Methods 1 and 3)
Income free area for family tax benefit (Part A—Methods 1 and 3)
FTB free area (A1 and A3)
[Schedule 1—clause 38N]
91 Subclause 3(1) of Schedule 4 (table items 4, 5 and 13)
Omit “(A1)”, substitute “(A1 and A3)”.
A New Tax System (Family Assistance) (Administration) Act 1999
92 Paragraph 28B(1)(b)
Repeal the paragraph, substitute:
(b) the individual is any of the following:
(i) an FTB child of the claimant;
(ii) a regular care child who is also a rent assistance child of the claimant;
(iii) an individual in respect of whom an approved care organisation is the claimant; and
Note: The headings to subsections 16(5) and (6) are altered by inserting “or regular care” after “FTB”.
93 Paragraph 28B(2)(b)
Omit “the only FTB child”, substitute “the only individual who is either an FTB child, or a regular care child who is a rent assistance child,”.
Note: The heading to subsection 28B(2) is altered by inserting “or regular care” after “FTB”.
94 Paragraph 28B(3)(a)
Omit “the FTB child”, substitute “an FTB child, or a regular care child who is also a rent assistance child,”.
Note: The heading to subsection 28B(3) is altered by inserting “or regular care” after “FTB”.
95 Paragraph 28B(3)(b)
After “FTB child”, insert “, or regular care child who is also a rent assistance child”.
96 Paragraph 30B(1)(b)
After “an FTB child”, insert “, or a regular care child who is also a rent assistance child,”.
Note: The heading to section 30B is altered by inserting “or regular care” after “FTB”.
97 Paragraphs 30B(1)(b) and (c)
Omit “the FTB child”, substitute “the child”.
98 Paragraphs 30B(2)(a) and (b)
Repeal the paragraphs, substitute:
(a) has the effect that the claimant is not entitled to be paid family tax benefit, if the conditions in paragraphs (1)(b) and (c) are met in relation to:
(i) each FTB child of the claimant; and
(ii) each regular care child who is also a rent assistance child of the claimant; or
(b) has the effect that the daily rate of family tax benefit for which the claimant is entitled under the determination does not take into account the FTB child or regular care child, if the conditions in paragraphs (1)(b) and (c) are not met in relation to:
(i) each FTB child of the claimant; and
(ii) each regular care child who is also a rent assistance child of the claimant.
99 Paragraph 30B(3)(b)
After “FTB child”, insert “or regular care child”.
100 Paragraph 32D(1)(c)
Omit “clause 17”, substitute “clause 38L”.
101 Paragraph 32J(1)(b)
After “FTB child”, insert “, or regular care child,”.
102 Paragraph 32K(1)(d)
After “FTB child”, insert “, or a regular care child who is also a rent assistance child,”.
103 Paragraph 32P(1)(b)
Omit “clause 17”, substitute “clause 38L”.
104 Paragraph 32P(1)(d)
After “FTB child”, insert “, or a regular care child who is also a rent assistance child,”.
105 After paragraph 33(1)(aa)
Insert:
(ab) the individual has at least one FTB child; and
106 Subparagraphs 71E(1)(a)(i) and (2)(a)(i)
After “FTB child”, insert “, or a regular care child,”.
107 Subsection 228(3)
After “one FTB child”, insert “, or one regular care child who is also a rent assistance child,”.
108 Paragraph 228(3)(b)
Omit “not an FTB child”, substitute “neither an FTB child, nor a regular care child,”.
109 Paragraph 228(4)(a)
After “FTB child”, insert “, and each regular care child who is also a rent assistance child,”.
Child Support (Registration and Collection) Act 1988
110 Paragraph 72AB(1)(b)
Repeal the paragraph, substitute:
(b) the child, or at least one of the children, for whom the person is eligible for family tax benefit is a designated child support child of the person and:
(i) an FTB child; or
(ii) a regular care child who is also a rent assistance child.
111 Subsection 72AB(2)
Omit “An FTB”, substitute “A”.
112 Subsection 72AB(5)
Insert:
regular care child has the same meaning as in the Family Assistance Act.
113 Subsection 72AB(5)
Insert:
rent assistance child has the same meaning as in the Family Assistance Act.
Social Security Act 1991
114 Subsection 6A(1) (after paragraph (b) of the second and third definitions of dependant)
Insert:
or (c) a regular care child;
115 Subsection 6A(2)
After “FTB child” (first occurring), insert “, or a regular care child,”.
116 Paragraph 6A(2)(a)
After “FTB child”, insert “, or a regular care child, (as the case requires)”.
117 Subsection 6A(3)
Repeal the subsection.
118 Subsection 23(1) (definition of maximum Part A rate of family tax benefit)
After “clause 3”, insert “or 28A”.
119 Subsection 23(1)
Insert:
regular care child has the meaning given by subsection 3(1) of the Family Assistance Act.
120 Subsection 23(1)
Insert:
rent assistance child has the meaning given by subsection 3(1) of the Family Assistance Act.
121 Paragraphs 992J(1)(c) and 992K(1)(c)
After “FTB child”, insert “, or a regular care child,”.
122 Subsection 1010(1)
Omit “subsections (2) and (3)”, substitute “subsections (1A) to (3A)”.
123 After subsection 1010(1)
Insert:
(1A) If a person who is qualified for double orphan pension for a child has, under section 59 of the Family Assistance Act, a shared care percentage for the child, the rate of double orphan pension under subsection (1) is the person’s shared care percentage of the rate of double orphan pension that would otherwise apply under that subsection to the child.
124 Subsections 1010(2) and (3)
Repeal the subsections, substitute:
Children who became double orphans before 1 July 2000
(2) If:
(a) a child became a double orphan before 1 July 2000; and
(b) the person who is qualified for double orphan pension for the child does not, under section 59 of the Family Assistance Act, have a shared care percentage for the child; and
(c) the current family tax benefit rate in respect of the child is less than the prior family allowance rate in respect of the child;
then the rate calculated under subsection (1) in relation to the child is increased by an amount equal to the difference between the prior family allowance rate and the current family tax benefit rate.
(2A) If:
(a) a child became a double orphan before 1 July 2000; and
(b) the person who is qualified for double orphan pension for the child has, under section 59 of the Family Assistance Act, a shared care percentage for the child; and
(c) the current family tax benefit rate in respect of the child is less than the shared care percentage of the prior family allowance rate in respect of the child;
then the rate calculated under subsections (1) and (1A) in relation to the child is increased by an amount equal to the difference between:
(d) the person’s shared care percentage of the prior family allowance rate; and
(e) the current family tax benefit rate.
Children who become double orphans on or after 1 July 2000
(3) If:
(a) a child becomes a double orphan on or after 1 July 2000; and
(b) the person who is qualified for double orphan pension for the child does not, under section 59 of the Family Assistance Act, have a shared care percentage for the child; and
(c) the current family tax benefit rate in respect of the child is less than the prior family tax benefit rate in respect of the child;
then the rate calculated under subsection (1) in relation to the child is increased by an amount equal to the difference between the prior family tax benefit rate and the current family tax benefit rate.
(3A) If:
(a) a child becomes a double orphan on or after 1 July 2000; and
(b) the person who is qualified for double orphan pension for the child has, under section 59 of the Family Assistance Act, a shared care percentage for the child; and
(c) the current family tax benefit rate in respect of the child is less than the shared care percentage of the prior family tax benefit rate in respect of the child;
then the rate calculated under subsections (1) and (1A) in relation to the child is increased by an amount equal to the difference between:
(d) the person’s shared care percentage of the prior family tax benefit rate; and
(e) the current family tax benefit rate.
125 Paragraph 1061ZK(4)(b)
After “Part 2”, insert “or 3A”.
126 Paragraph 1061ZK(4)(c)
Omit “Division 4 of Part 2”, substitute “Division 2C of Part 5”.
127 After subsection 1061ZK(4)
Insert:
(4A) This section applies to a person on a day if, on that day:
(a) the person has a regular care child; and
(b) the person is not entitled, under the Family Assistance Administration Act, to be paid family tax benefit by instalment; and
(c) the person’s income excess for the purposes of Division 2C of Part 5 of Schedule 1 to the Family Assistance Act is nil.
128 Paragraph 1061ZO(2)(c)
Omit “not an FTB child”, substitute “neither an FTB child, nor a regular care child,”.
129 Paragraphs 1061ZO(3)(c) and (4)(c)
After “FTB child”, insert “, or a regular care child,”.
130 Subparagraph 1070D(3)(a)(ii)
Omit “clause 4A”, substitute “clause 38J”.
131 Subparagraph 1070D(3)(b)(ii)
Omit “clause 4A or 4B”, substitute “clause 38J or 38K”.
132 Paragraph 1070E(d)
Omit “clause 4A”, substitute “clause 38J”.
133 Subparagraph 1070F(2)(c)(iv)
Omit “clause 4A”, substitute “clause 38J”.
134 Subparagraph 1070F(2)(d)(iv)
Omit “clause 4A or 4B”, substitute “clause 38J or 38K”.
135 Subparagraph 1070F(3)(c)(iv)
Omit “clause 4A”, substitute “clause 38J”.
136 Subparagraph 1070F(3)(d)(iv)
Omit “clause 4A or 4B”, substitute “clause 38J or 38K”.
137 Subparagraph 1070G(1)(c)(iv)
Omit “clause 4A”, substitute “clause 38J”.
138 Subparagraph 1070G(1)(d)(iv)
Omit “clause 4A or 4B”, substitute “clause 38J or 38K”.
139 Subparagraph 1070H(2)(c)(iv)
Omit “clause 4A”, substitute “clause 38J”.
140 Subparagraph 1070H(2)(d)(iv)
Omit “clause 4A or 4B”, substitute “clause 38J or 38K”.
141 Subparagraph 1070J(b)(iv)
Omit “clause 4A”, substitute “clause 38J”.
142 Subparagraph 1070J(c)(iv)
Omit “clause 4A or 4B”, substitute “clause 38J or 38K”.
Veterans’ Entitlements Act 1986
143 Subparagraph (b)(ii) of point SCH6‑C3A of Schedule 6
Omit “clause 4B”, substitute “clause 38K”.
144 Subparagraph (b)(ii) of point SCH6‑C3B of Schedule 6
Omit “clause 4A or 4B”, substitute “clause 38J or 38K”.
Division 2—Application and saving provisions
145 Application
(1) The amendments to the A New Tax System (Family Assistance) Act 1999 and the A New Tax System (Family Assistance) (Administration) Act 1999 made by this Schedule apply in relation to the 2008‑09 income year and later income years.
(2) The amounts referred to in clauses 38C, 38D and 38E of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 (as inserted by item 84 of this Schedule) are to be indexed in accordance with Schedule 4 to that Act after 19 September 2006 as if item 84 had commenced on that day.
Note: Those amounts will first be indexed on 20 September 2006.
(3) The amount referred to in clause 38N of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 (as inserted by item 84 of this Schedule) is to be indexed in accordance with Schedule 4 to that Act after 30 June 2007 as if item 84 had commenced on that day.
Note: That amount will first be indexed on 1 July 2007.
146 Saving determinations
If a determination that a child is an FTB child is in force under subsection 42(2), 44(3) or 45(3) of the A New Tax System (Family Assistance) Act 1999 immediately before this item commences, the determination continues in force as if it were a determination that the child is a regular care child made under that subsection, as amended by this Schedule.
147 Saving qualification and rates for double orphan pension
(1) This item applies if:
(a) immediately before 1 July 2008, a person is receiving a double orphan pension for a young person under the Social Security Act 1991; and
(b) on 1 July 2008:
(i) the person would (apart from this item) cease to qualify for a double orphan pension for the young person because of the amendments to the A New Tax System (Family Assistance) Act 1999 made by this Schedule; or
(ii) the rate of the double orphan pension payable to the person for the young person would (apart from this item) be affected by the amendments to the Social Security Act 1991 made by items 122, 123 and 124 of this Schedule.
Continuation of qualification
(2) If subparagraph (1)(b)(i) applies, then, on and after 1 July 2008, the person continues to qualify for a double orphan pension for the young person, despite the amendments to the A New Tax System (Family Assistance) Act 1999 made by this Schedule.
(3) However, the person ceases to qualify under subitem (2) for a double orphan pension for the young person if:
(a) the person would cease to qualify for a double orphan pension for the young person under the Social Security Act 1991 for a reason other than because of the amendments to the A New Tax System (Family Assistance) Act 1999 made by this Schedule; or
(b) the rate at which the double orphan pension would be payable to the person for the young person under the Social Security Act 1991 (assuming the person continued to qualify for a double orphan pension for the young person under that Act) becomes equal to or greater than the rate at which the double orphan pension is payable under subitem (4).
Continuation of rate
(4) On and after 1 July 2008, while the person continues to qualify for a double orphan pension for the young person (whether under subitem (2) or, if subparagraph (1)(b)(ii) applies, under the Social Security Act 1991), the double orphan pension is payable to the person for the young person at the lower of the following rates (the saved rate):
(a) the rate at which the double orphan pension was payable to the person for the young person immediately before 1 July 2008, despite:
(i) the amendments to the Social Security Act 1991 made by items 122, 123 and 124 of this Schedule; and
(ii) section 1190 of that Act (indexation);
(b) if the young person is an FTB child of the person on or after 1 July 2008—the rate that would be payable to the person for the young person under section 1010 of the Social Security Act 1991 as in force immediately before 1 July 2008.
(5) However, the double orphan pension ceases to be payable to the person for the young person at the saved rate if the rate at which the double orphan pension would otherwise be payable to the person for the young person under the Social Security Act 1991 becomes equal to or greater than the saved rate.
Part 2—Maintenance income test
Division 1—Amendments
A New Tax System (Family Assistance) Act 1999
148 Subsection 3(1) (at the end of the definition of capitalised maintenance income)
Add:
Note: Periodic amount is defined in section 19.
149 Subsection 3(1) (at the end of the definition of maintenance income)